research rehash_research 29/08/2014 16:52 Page 2
ter decline in such a widerange of markets is a worrying trend for the industry as a
whole. In the East, the twoquarter decline is affecting
two of the region’s main markets: Poland and the Czech
Republic.
Growth has also softened
on a pan-regional basis, down
30% cent on the same quarter
a year earlier at just 0.66%
cent in the quarter. The rapid
growth of IPTV and low-cost
satellite is beginning to levelout, meaning losses on other
traditional platforms are not
being fully compensated.
While it is easy to point the
finger at Over-the-Top (OTT)
services as the cause of cordcutting, there is no obvious
relationship between the markets now seeing a sustained
decline and the entry of larger OTT players such as
Netflix. Further quarters will
tell, but the current trend is
likely a combination of factors including an over-hang
from the recent economic
downturn and the wider
impact of new technology in
the home broadening the
consumption choices of the
average consumer, advises
Bisson.
Streaming fuels new
viewing habits
With an array of online
options for viewing media not to mention the increasing amount of original content created for online audiences - video streaming
services have become a disruptive influence on the traditional television business,
according to global research
consultancy TNS. While consumer's preference is still
television, TV sets alone are
no longer enough to satisfy
the appetite for content,
driving the growth of online
media and video streaming
services.
In ReQuest, a quarterly
study into the telecommuni-
16 IP television
cation behaviour of over
20,000 U.S. households, TNS
found that more than onethird (34%) of households
have streamed video within
the previous month. Yet, the
majority of these streaming
households also purchase traditional Subscription Video
service (e.g. cable, satellite,
or fibre TV) - more than one
in four (26%) watch both Pay
TV and streaming, compared
to just one in thirteen (8%)
that only watch streaming
video.
Even while the conventional model of 'pay-TV Only'
service still represents a
majority scenario (55%), it is
steadily becoming less commonplace. “The allure of
streaming technology is furthering the fragmentation of
the consumer video market,
resulting in weaker brand
affiliations, reduced customer
loyalties, and higher defection risks across all video distributors,” notes TNS Vice
president Frank Perazzini.
“Given the emerging challenges from alternative channels, the sustainability of traditional pay-TV service could
be vulnerable if new pricing
models offer consumers
access to the content they
desire at lower rates than are
available today.” To defend
their still-dominant position,
many Pay TV providers are
strengthening their offers in
order to stay competitive
through such enhancements
as TV Everywhere and a variety of mobile apps, which
seek to deliver customers a
user-friendly interface for
multi-platform and ondemand viewing.
The shift toward online
consumption of television has
been a long time coming,
thanks to the dual advances
in both technology and viewership. Faster Internet, more
content, and more devices
capable of streaming highquality video have created a
larger and still-growing audience for streaming video. Yet,
one other factor driving the
persistent growth of consumer experimentation with
and acceptance of streaming
video is this simple fact - people keep moving. That is,
sooner or later, we all change
addresses for one reason or
another, and this often
affords us the opportunity (or
necessity) to try new communications providers and
access types.
According to the report,
TNS found the prevalence of
streaming behaviour is both
higher and growing faster
among households that
moved within the past year.
Half (50%) of Mover households have used streaming in
the past month, compared to
less than a third (32%) of
Non-Mover households.
Furthermore, nearly one in
six Movers views only streaming video, compared to just
one in fourteen Non-Movers.
And, among Movers, the overall penetration of streaming
(50%) now exceeds the penetration of households with
only traditional Pay TV service
(37%) by double digits.
“Although recent Movers
comprise only about eight per
cent of all households, there
could be enduring effects on
household viewing behaviours
over the long term,” Perazzini
states. “The considerably
higher incidence of households that only view streaming video among Movers hints
at streaming's potential to
supplant - rather than merely
supplement -- tradit